So, I am trying to talk about the preferences of the couple, not the preferences of either individual. You might reject that the couple is capable of having preference, if so I am curious if you think Bob is capable of having preferences, but not the couple, and if so, why?
I agree if you can do arbitrary utility transfers between Alice and Bob at a given exchange rate, then they should maximize the sum of their utilities (at that exchange rate), and do a side transfer. However, I am assuming here that efficient compensation is not possible. I specifically made it a relatively big decision, so that compensation would not obviously be possible.
Whether the couple is capable of having preferences probably depends on your definition of “preferences.” The more standard terminology for preferences by a group of people is “social choice function.” The main problem we run into is that social choice functions don’t behave like preferences.
So, I am trying to talk about the preferences of the couple, not the preferences of either individual. You might reject that the couple is capable of having preference, if so I am curious if you think Bob is capable of having preferences, but not the couple, and if so, why?
I agree if you can do arbitrary utility transfers between Alice and Bob at a given exchange rate, then they should maximize the sum of their utilities (at that exchange rate), and do a side transfer. However, I am assuming here that efficient compensation is not possible. I specifically made it a relatively big decision, so that compensation would not obviously be possible.
Whether the couple is capable of having preferences probably depends on your definition of “preferences.” The more standard terminology for preferences by a group of people is “social choice function.” The main problem we run into is that social choice functions don’t behave like preferences.